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ratelena [41]
3 years ago
15

The Consumer Products Division of Goich Corporation had average operating assets of $1,450,000 and net operating income of $133,

100 in May. The minimum required rate of return for performance evaluation purposes is 9%. What was the Consumer Products Division's residual income in May?
Business
1 answer:
lidiya [134]3 years ago
8 0

Answer:

Consumer Products Division's residual income in May is $2,600

Explanation:

Residual Income is the dollar amount of the divisional operating profit over its cost of acquiring capital to purchases its operating assets.

Residual Income = Operating Income - (Operating Assets × Cost of Capital)

Therefore,

Residual Income = $133,100 - ($1,450,000 × 9.00%)

                            = $2,600

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Naddik [55]
Hiring these people is known as "staffing".


The way toward enlisting appropriate candidates as per their insight and aptitudes in an association is named as staffing. 
Viable staff administration is fundamental to guaranteeing your working environment runs easily and productively, and that the correct representatives are in the correct positions. Then again, poor staffing can bring about a confused, disorderly workplace, which can possibly influence your organization to lose profitable business.
6 0
3 years ago
Consider the following timeline detailing a stream of cash​ flows: The timeline starts at Date 0 and ends at Date 4. The cash fl
gizmo_the_mogwai [7]

Answer:

Present value= $20,227.45

Explanation:

Giving the following information:

On Date 1, the cash flow is 5,000 dollars. On Date 2, the cash flow is 6,000 dollars. On Date 3, the cash flow is 7,000 dollars. On Date 4, the cash flow is 8,000 dollars. The current market rate of interest is 10​%.

We need to use the following formula:

PV= FV/(1+i)^n

Date 1= 5,000/1.10= 4,545.46

Date 2= 6,000/1.10^2= 4,958.68

Date 3= 7,000/1.10^3= 5,259.20

Date 4= 8,000/1.10^4= 5,464.11

Total= $20,227.45

6 0
3 years ago
Spartan Corporation estimates that it will incur $200,000 of total manufacturing overhead cost at an estimated activity level of
bagirrra123 [75]

Answer:

Applied manufacturing overhead is $4,000

Explanation:

Given,

Total manufacturing overhead = $200,000

Activity level = 10,000 DLH

Predetermined overhead rate = \frac{Manufacturing\ overhead\ cost}{Activity\ level}

=\frac{200,000}{10,000}

=$20

Manufacturing overhead applied = predetermined rate × time required

                                                       = 20 × 200

                                                       = $4,000

Therefore, manufacturing overhead of $4,000 is applied to the job.

3 0
3 years ago
Selling the bonds at a premium has the effect of a. raising the effective interest rate above the stated interest rate b. causin
Andreyy89

Answer:

B. causing the interest expense to be lower than the bond interest paid

Explanation:

3 0
2 years ago
Find the periodic payments PMT necessary to accumulate the given amount in an annuity account. (Assume end-of-period deposits an
ikadub [295]

Answer:

$ 226.04

Explanation:

Given:

Paying fund, FV = $ 30000

Interest rate, i = 2%

Time, t = 10 years

Now,

\textup{PMT}=\textup{FV}[\frac{i}{(1+i)^n-1}]

since, the payment is made monthly

thus,

n = 10 × 12 = 120 months

i = 2% / 12 = 0.02 / 12

on substituting the values in the above equation, we get

PMT={30000}[\frac{\frac{0.02}{12}}{(1+{\frac{0.02}{12}})^{120}-1}]

or

PMT = $ 226.04

3 0
3 years ago
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